First Charter Reports Record Net Income of $48.2 Million for 2006.Fourth Quarter 2006 Highlights * Net Interest Margin Improves 7 Basis Points to 3.40%, Compared to 2006 Third Quarter * Record Net Interest Income of $36.7 Million; 12.7% Increase Over Same 2005 Period * Commercial Loan Average Balances Grow 31% Over 2005 Fourth Quarter, or $473 Million, on Charlotte and Raleigh Market Growth and GBC GBC Game Boy Color GBC Global Business Coalition GBC Green Building Council GBC George Brown College GBC Great Basin College (Nevada) GBC General Binding Corporation GBC Greater Baltimore Committee GBC Goldey-Beacom College Bancorp, Inc. Acquisition * Solid Credit Quality Trends Continue; Nonaccrual Loans to Total Loans Remain at Record 23 bp * GBC Acquisition and Raleigh Market Expansion Transform Franchise * Record Customer Satisfaction Scores; 89% Rate "Very Satisfied" with First Charter CHARLOTTE, N.C. -- First Charter Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FCTR FCTR First Charter Corporation (stock symbol) FCTR Federal Cash Transactions Report FCTR Forced Call Termination Rate ) today reported record net income of $48.2 million, or $1.51 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for 2006. This compares with $25.3 million, or $0.82 per diluted share, for 2005. For the fourth quarter of 2006, net income was $12.4 million, or $0.37 per diluted share, compared to $12.8 million, or $0.41 per diluted share, for the 2006 third quarter, and a net loss of $8.3 million, or $0.27 per diluted share, for the 2005 fourth quarter. The fourth quarter of 2006 was adversely affected by several items, including $0.7 million in expense incurred from the accelerated vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of equity options, $0.3 million in merger-related expense, $0.2 million in employee separation expense, and a spike in First Charter's tax rate to 36.4% arising from the sale of Southeastern Employee Benefits Services (SEBS). President's Comments President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Bob James Bob James can refer to different people:
adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d expense control, excellent credit quality, and the dedicated efforts of all of our teammates." James added, "Despite all of this year's significant accomplishments, we were disappointed recently at having to delay our earnings release. The combination of two significant transactions - the acquisition of GBC and the sale of SEBS - the advent of several new accounting standards, and a key vacancy in the leadership of our accounting area exposed certain weaknesses in our internal controls. Under the leadership of Chuck Caswell, our CFO See Chief Financial Officer. , and the addition of Sheila Stoke stoke n. A unit of kinematic viscosity equal to that of a fluid with a viscosity of one poise and a density of one gram per milliliter. stoke , our recently hired Controller, I am confident we are working quickly to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. the financial infrastructure to support our growth strategy." Record Net Interest Income - Net Interest Margin Expands 13 Basis Points Over 2005 The net interest margin, on a tax-equivalent basis, increased 13 basis points to 3.40% in the fourth quarter of 2006 from 3.27% in the fourth quarter of 2005. The margin improvement benefited, in part, from the addition of GBC's higher-margin balance sheet and the continued benefits from previously disclosed balance sheet repositionings in the fourth quarter of 2005 and the third quarter of 2006. Net interest income, on a tax-equivalent basis, increased to $36.7 million, representing a $4.1 million, or 12.7%, increase over the fourth quarter of 2005. Compared to the fourth quarter of 2005, earning-asset yields increased 103 basis points to 6.96%. This increase was driven by two factors. First, loan yields increased 99 basis points to 7.56% and securities yields increased 68 basis points to 4.84%. Second, the mix of higher-yielding (loan) assets improved as a result of the GBC acquisition, the balance sheet repositionings, and a smaller percentage of lower-yielding mortgage loans. The percentage of investment security average balances (which, on average, have lower yields than loans) to total earning asset Earning asset An asset that generates income, e.g., income from rental property. average balances was reduced from 25.9% to 21.6% over the past year. On the liability side of the balance sheet, the cost of interest-bearing liabilities increased 104 basis points, compared to the fourth quarter of 2005. This was comprised of a 106 basis point increase in interest-bearing deposit costs to 3.73%, while other borrowing costs increased 112 basis points to 4.90%. During this period, the Federal Reserve raised the rate that banks can lend funds to each other (the Fed Funds fed funds See federal funds. rate) by 100 basis points. Also, as a result of the balance sheet repositionings, the percentage of higher-cost, other borrowings average balances was reduced from 31.3% to 28.1% of total interest-bearing liabilities average balances over the past year. The net interest margin improved 7 basis points to 3.40% during the fourth quarter of 2006 from 3.33% in the preceding quarter. Several factors contributed to the margin improvement, including the addition of GBC's higher-margin balance sheet, and a 28 basis point improvement in investment portfolio yields, offset somewhat by a more competitive deposit pricing environment and less consumer loan growth than planned. Compared to the third quarter of 2006, earning-asset yields increased 26 basis points to 6.96%. This increase was driven by a 28 basis point improvement in securities yields and a 21 basis point improvement in loan yields. The cost of interest-bearing liabilities increased 21 basis points to 4.06%. This was primarily the result of a 26 basis point increase in interest-bearing deposit costs and a 7 basis point increase in other borrowing costs. Commercial Lending Leads Loan Growth Total loan average balances for the 2006 fourth quarter increased $412 million, or 14.1%, to $3.3 billion, compared to $2.9 billion for the 2005 fourth quarter. Approximately $224 million of the increase was attributable to the GBC acquisition. Commercial loan growth drove the increase, rising by $473 million, or 31.4%, of which, $214 million was attributable to the GBC acquisition. The remainder reflected continued robust commercial lending in the Charlotte and Raleigh markets. Consumer loan average balances decreased $17 million and mortgage loan average balances decreased $44 million. The decline in mortgage loan balances was due to normal loan amortization and First Charter's strategy of selling most of its new mortgage production in the secondary market. GBC had no residential mortgages on its balance sheet at the time of the acquisition. Cash flow from mortgage loan runoff Runoff The procedure of printing the end-of-day prices for every stock on an exchange onto ticker tape. Notes: If the "tape is late" then it can take a long time to print off all the closing prices. contributed to financing higher yielding commercial loans. Compared to the third quarter of 2006, total loan average balances grew $266 million, or 34.4% annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. . Approximately $224 million of this growth was attributable to the GBC acquisition, while the remainder resulted from organic commercial and construction loan growth. Consumer loan average balances fell $5 million during the fourth quarter, while mortgage loan average balances declined $9 million in the fourth quarter as part of the strategy mentioned above. In late September 2006, First Charter's previously announced sale of two financial centers was completed. This sale reduced total loan average balances by $0.4 million in the third quarter and third quarter period-end loan balances, primarily in consumer loans, by $8.1 million. The sale's impact is included in the comparisons above. Deposit Growth Boosted by GBC Acquisition Deposit growth, particularly low-cost transaction (or core) deposit growth (money market, demand, and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: ), continues to be an area of emphasis at First Charter. For the fourth quarter of 2006, core deposit average balances increased $94 million, or 6.3%, compared to the fourth quarter of 2005. This includes overcoming the impact of First Charter's sale of two financial centers in September 2006, which included the sale of $24 million of core deposits. Approximately $76 million of the core deposit average balance growth was attributable to the GBC acquisition. The total core deposit increase was primarily driven by a $41 million, or 7.1%, increase in money market average balances, a $29 million, or 6.2%, increase in interest checking and savings average balances, and a $23 million, or 5.5%, increase in noninterest-bearing demand deposit average balances. Of these increases, GBC contributed approximately $51 million to money market deposit average balances, $4 million to interest checking and saving average balances, and $21 million toward noninterest-bearing demand deposit balances. Compared to the third quarter of 2006, core deposit average balances increased $38 million, or 9.8% annualized. This includes overcoming the impact of First Charter's previously mentioned financial center sale in September 2006, which included the sale of $24 million of core deposits. The overall growth was primarily concentrated in money market and interest checking balances. Certificate of deposit (CD) average balances for the fourth quarter of 2006 grew $143 million from the third quarter of 2006 and $219 million from the fourth quarter of 2005. Of this growth, approximately $159 million was attributable to the GBC acquisition. CD growth was also affected by the sale of $14 million of CDs in conjunction with the previously mentioned financial center sale. Noninterest Income Increases Historical noninterest income amounts have been restated to reflect the effect of reporting the previously announced sale of SEBS as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . Noninterest income for the fourth quarter of 2006 was $17.5 million, up $0.4 million from $17.1 million for the third quarter of 2006. Comparisons to the fourth quarter of 2005 are distorted due to the impact of the charges taken in that quarter for First Charter's previously discussed balance sheet repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. . Contributing to the growth over the third quarter of 2006 were increases in deposit service revenue, bank owned life insurance, brokerage, insurance, and mortgage revenues. For 2006, noninterest income was $68.3 million, a $21.5 million improvement, compared to $46.7 million for 2005. Net securities losses incurred in balance sheet repositionings contributed $10.9 million toward the increase. Additionally, Venture capital / SBIC SBIC Small Business Investment Company SBIC Sustainable Buildings Industry Council SBIC Singapore Bioimaging Consortium (Singapore) SBIC School Bus Information Council SBIC Saudi Basic Industries Corporation SBIC Scsi Bus Interface Controller investment gains contributed $4.3 million, gains from the sale of branches and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. (excluding SEBS) contributed $1.6 million, additional debit and ATM fees contributed $1.7 million, deposit service revenue contributed $1.2 million, insurance revenue contributed $0.8 million, and mortgage revenue contributed $0.8 million. Partially offsetting this increase was an $0.8 million Bank Owned Life Insurance (BOLI BOLI Bank-Owned Life Insurance BOLI Bureau of Labor and Industries ) revenue decrease due to death benefits received in 2005 that did not recur in 2006. GBC Acquisition, Raleigh Market Entry, and Equity-Based Compensation Costs Led to Higher Noninterest Expense Historical noninterest expense amounts have been restated to reflect the effect of reporting the previously announced sale of SEBS as a discontinued operation. Noninterest expense for the fourth quarter of 2006 was $33.7 million, up $4.1 million from $29.6 million in the third quarter of 2006. Additional expense from GBC contributed $1.8 million to the increase. On a linked-quarter basis, salaries and benefits expense increased $3.5 million, reflecting $1.1 million in additional expense from GBC personnel, $0.7 million from the accelerated expensing of stock options granted before 2006, and $0.4 million from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. revision to a medical reserve due to revised actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin assumptions in the third quarter. Salaries and benefits expense included $0.2 million in severance expense, compared to $0.3 million in the 2006 third quarter. Occupancy and equipment expense increased $0.2 million from the third quarter due to a new loan platform being placed into service during the fourth quarter. Foreclosed properties expense increased by $0.2 million. Intangible amortization expense also increased by $0.2 million due to core deposit intangible amortization from the GBC acquisition. On a year-over-year basis, total noninterest expense for the 2006 fourth quarter decreased $9.5 million to $33.7 million, compared to the fourth quarter of 2005. The 2005 fourth quarter included approximately $14.7 million of expense related to the previously discussed balance sheet repositioning. Raleigh-related expense totaled $1.3 million during the quarter, compared to $0.7 million in the fourth quarter of 2005. Salaries and employee benefits increased $3.8 million, compared to the fourth quarter of 2005, principally attributable to $1.1 million in GBC personnel-related expenses; $0.6 million from Raleigh personnel expense and investment and an additional $1.1 million from equity-based compensation, including option acceleration expense. Occupancy and equipment expense included $0.2 million of incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. Raleigh-related costs. Data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a expense increased $0.1 million on a year-over-year basis due to increased transaction volume. Marketing expense declined $0.5 million compared to the year-ago quarter. Expensing equity-based compensation under FAS 123R and accelerated option expensing reduced diluted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. by 2.0 cents and 5.7 cents in the 2006 fourth quarter and full year, respectively. Earnings in 2005 were only minimally affected by restricted stock expense. For full-year 2006, noninterest expense decreased $3.3 million to $124.7 million, compared to 2005. The 2006 results include $5.0 million in expenses related to Raleigh. Salaries and benefits expense for 2006 increased $7.5 million, compared to the 2005 full-year period, of which approximately $2.0 million was due to additional personnel in the Raleigh market and $1.1 million was attributable to the GBC acquisition. Equity-based compensation expense totaled $2.8 million, while increased incentive-based compensation contributed $1.2 million toward the increase in salaries and employee benefits. These increases were partially offset by a $1.1 million expense associated with a legacy employee benefit plan in the second quarter of 2005, which did not recur in 2006. Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. expense rose $0.7 million, reflecting an increase in outsourced services. Data processing expense increased $0.6 million as a result of increased ATM and debit transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . Occupancy and equipment expense increased $1.6 million due to additional financial center lease and depreciation costs, of which approximately $1.1 million was related to additional Raleigh financial centers. These increases were partially offset by certain corporate fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → becoming fully depreciated Fully depreciated An asset that has already been charged with the maximum amount of depreciation allowed by the IRS for accounting purposes. fully depreciated Of or relating to a fixed asset that has been depreciated to a book value of zero. in the third and fourth quarters of 2006 and no longer being expensed. First Charter's efficiency ratio was 62.3% in the fourth quarter of 2006, compared with 52.4% in the third quarter of 2006 and 58.9% in the fourth quarter of 2005. The fourth quarter 2006 efficiency ratio was adversely impacted by $0.7 million in costs associated with the accelerated vesting of stock options, $0.3 million in direct GBC acquisition-related costs, and $0.2 million in severance expenses. Normalized Income Tax Rate Affects Year-Over-Year Comparisons The effective tax rate for the fourth quarter of 2006 was 36.4%, compared with 33.0% in the preceding quarter and 40.0% in the fourth quarter of 2005. The 2005 fourth quarter was significantly affected by charges incurred for the previously mentioned balance sheet repositioning, while the 2006 fourth quarter is adversely affected by the tax gain recognized from the sale of SEBS and additional revenue related to the GBC acquisition. For the full years of 2006 and 2005, the effective tax rate was 34.4% and 26.7%, respectively. Raleigh Growth Continues to Exceed Expectations In October 2005 and mid-February 2006, the Corporation expanded into the Raleigh, North Carolina For other uses of this name, see Raleigh. Raleigh (IPA: /ˈrɑli/, ral-ee) is the capital of the State of North Carolina and the county seat of Wake County. market with the opening of one and three de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. financial centers, respectively. At December 31, 2006, Raleigh-related loans totaled $133.8 million, exceeding First Charter's original business case, and represented a $25.7 million increase in balances from September 30, 2006. Deposit balances in Raleigh were $31.8 million at the end of the 2006 fourth quarter. "Our progress in Raleigh is highly encouraging," James commented. "While it will take us some time to become well-known throughout this market, our Raleigh team is working hard to position First Charter as a strong banking option for individuals and businesses. Based on this year's successes, we opened our fifth financial center in Raleigh on January 29, 2007." As previously disclosed, the expense associated with the Raleigh initiative was front-end loaded Front-End Load A commission or sales fee charged at the time of the initial purchase for an investment, usually mutual funds and insurance policies. It is deducted from the investment amount and thus, lowers the size of the investment. and was ahead of revenue during 2006. For the fourth quarter of 2006, Raleigh-related expense (net of revenue), including marketing expenses, totaled $0.4 million. This negatively impacted diluted EPS by 0.8 cents during the quarter and is an improvement compared to 1.2 cents in the third quarter of 2006. For 2006, Raleigh-related net expenses were $3.1 million. This negatively impacted diluted EPS by 6.4 cents on a full year basis. Solid Credit Quality Credit quality continues to be very strong, with net charge-offs of 0.08% of average portfolio loans in the fourth quarter of 2006, compared to 0.13% in the prior quarter and 0.39% in the fourth quarter of 2005. For the full-year 2006, net charge-offs were 0.11%, compared to 0.27% in 2005. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. were $14.4 million at December 31, 2006, representing a $1.7 million increase from $12.7 million at September 30, 2006 and a $1.5 million decline from $15.9 million at December 31, 2005. Nonperforming assets as a percentage of total portfolio loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most were 0.41% at December 31, 2006, unchanged from September 30, 2006 and down from 0.54% December 31, 2005. The allowance for loan losses was $34.5 million, or 0.99%, as a percentage of portfolio loans at December 31, 2006, a modest increase from 0.97% at September 30, 2006 and 0.98% at December 31, 2005. The provision for loan losses was $1.0 million for the 2006 fourth quarter, while net charge-offs were $0.7 million for the period. For the same year-ago period, the provision for loan losses was $1.8 million and net charge-offs were $2.9 million. For the full-year 2006, the provision for loan losses was $4.8 million, compared with $9.3 million for 2005. Net charge-offs for the full year of 2006 were $3.3 million, compared to $7.5 million for 2005. The Corporation's addition of GBC's loan portfolio as well as First Charter's credit migration trends led to the higher allowance for loan loss ratio. The Corporation's provision for loan losses and allowance for loan losses is based on consideration of specific loans, past loan loss experience, and other factors that, in management's judgment, deserve current recognition in estimating probable loan losses. Other factors considered by management include the growth and composition of the loan portfolio and current economic conditions. Balance Sheet Strength and Capital Management At December 31, 2006, total assets were $4.9 billion compared with $4.2 billion a year ago. The increase was attributable to the acquisition of GBC, First Charter's organic growth and the $60.1 million increase in goodwill generated from the GBC purchase. At December 31, 2006, total deposits were $3.2 billion, including core deposits of $1.6 billion. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $450.9 million, or 9.28% of total assets, compared with $323.6 million, or 7.65%, a year ago. Tangible common equity as a percentage of tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. was 7.66% at December 31, 2006, compared to 7.17% at December 31, 2005, and 7.58% at September 30, 2006. Shares outstanding rose from approximately 31.2 million at September 30, 2006 to 34.9 million on December 31, 2006. Of the 3.7 million increase in outstanding shares, approximately 3.1 million were attributable to First Charter Corporation's acquisition of GBC and 0.5 million were attributable to a concentrated exercise of legacy stock options granted by First Charter as part of its acquisition of HFNC HFNC High Flow Nasal Cannula HFNC Hemophilia Foundation of Northern California Financial Corp. (Home Federal) in 1998. There were no repurchases of the Corporation's common stock during 2006. First Charter has previously-granted authority to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 1.6 million shares of its common stock. Effectiveness of Internal Controls During the process of producing the fourth quarter and year-end financial results, management identified several deficiencies in its internal controls. Management believes that, collectively, these deficiencies may constitute a material weakness in its internal controls relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the financial accounting process. First Charter does not expect this to have any impact on its historical financial statements. Management is in the process of completing its annual assessment of internal controls. Should a conclusion on a material weakness in the Corporation's internal controls be determined, management will disclose this in its report contained in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for 2006. Conference Call First Charter Corporation's executive management will host a conference call at 9:00 a.m. (ET) on Tuesday, February 6, 2007 to discuss the fourth quarter 2006 financial results. Interested parties may access the conference call by dialing 800-379-3953 (domestic) or 706-679-5254 (international), using the pass code of 3822040. Participants are encouraged to call in 15 minutes prior to the call in order to register for the event. The earnings release and the conference call slide presentation will also be accessible via the Company's Web site, www.firstcharter.com, under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. A replay of the conference call will be available from 2:00 p.m. (ET) on February 6, 2007, until midnight (ET) on February 13, 2007. The replay will be accessible by calling 800-642-1687 (domestic) or 706-645-9291 (international), using the pass code of 3822040. An audio replay will also be available on the Company's Web site under the Investor Relations section for 30 days. Corporate Profile First Charter Corporation (NASDAQ: FCTR), headquartered in Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. , is a regional financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with assets of $4.9 billion and is the holding company for First Charter Bank and Gwinnett Banking Company. First Charter operates 58 financial centers, four insurance offices, and 139 ATMs in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and Georgia, and also operates loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. offices in Asheville, North Carolina Not to be confused with Ashville. Asheville is a city in Buncombe County, North Carolina, and is its county seat. As of the 2000 census, the city had a total population of 68,889. It is the largest city in western North Carolina, and continues to grow. and Reston, Virginia Reston is an internationally known planned community whose goal was to revolutionize post-World War II concepts of land use and residential/corporate development in American suburbia. . First Charter provides businesses and individuals with a broad range of financial services, including banking, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , wealth management, investments, insurance, and mortgages. For more information about First Charter, visit the Company's Web site at www.firstcharter.com or call 800-601-8471. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements with respect to the financial condition and results of operations of First Charter Corporation. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward- looking statements, and which may be beyond the Corporation's control, include, among others, the following possibilities: (1) projected results in connection with management's implementation of, or changes in, the Corporation's business plan and strategic initiatives, including the recent balance sheet initiatives, are lower than expected; (2) competitive pressure among financial services companies increases significantly; (3) costs or difficulties related to the integration of acquisitions, including deposit attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: , customer retention and revenue loss, or expenses in general are greater than expected; (4) general economic conditions, in the markets in which the Corporation does business, are less favorable than expected; (5) risks inherent in making loans, including repayment risks and risks associated with collateral values, are greater than expected; (6) changes in the interest rate environment, or interest rate policies of the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , may reduce interest margins and affect funding sources; (7) changes in market rates and prices may adversely affect the value of financial products; (8) legislation or regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. or changes thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , including changes in accounting standards, may adversely affect the businesses in which the Corporation is engaged; (9) regulatory compliance cost increases are greater than expected; (10) the passage of future tax legislation, or any negative regulatory, administrative or judicial position, may adversely impact the Corporation; (11) the Corporation's competitors may have greater financial resources and may develop products that enable them to compete more successfully in the markets in which it operates; and (12) changes in the securities markets, including changes in interest rates, may adversely affect the Corporation's ability to raise capital from time to time. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion